PROSPECTING
INDEX
Summary
Definition
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Why prospect?
When to prospect?
How to prospect?
Your attitude towards prospecting
-
The habit
-
The attitude
Qualification criteria for a potential client
The gathering of names
-
The “A.W.W.” technique
Prospecting sources
-
Prospecting interview
What do you think?
Existing clients
Parents, friends, acquaintances
Government Plans
The Endless chain (referrals)
Personal observations
General Insurance
Direct solicitation
Approach by way of the will
Mandate in case of incapacity
Market analysis
Registered Retirement Savings Plan (RRSP)
The Home Protection Plan
The Peek-a-boo Program
Accifamily
Exchange of services
Influence centres
Deferred prospecting
Questionnaire
Practical exercises
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PROSPECTING
Upon completion of this module, you should be able to do the following:
To know the “why”, “when” and “how” of prospecting.
To know your attitude towards prospecting.
To gather the names of references
To analyze the prospecting sources.
To recognize “deadwood”.
ACTIVITIES:
Read the following text.
Answer the questionnaire.
Do the practical exercises.
Refer to the “Interface” learning guide.
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PROSPECTING
“In business, prospecting is like breathing:
it is indispensable for surviving.”
Jack Jr. & Gary Kinder, C.L.U.
Prospecting is the systematic research of persons, families and groups to which you wish to offer
your services.
Prospecting is the most important skill to develop: with no prospecting, no potential client; with
no potential client, no sale; with no sale, no career.
A known fact: we do not belong to an era where the potential client phones an agent on his own
to buy a life insurance policy… or at least, not yet! On the contrary, it’s up to you, the agent, to
convince him of the quality and usefulness of the services you can offer him.
But, who can I offer my services to? Any person satisfying the qualification criteria as defined
later in this module, for example:
mature,
responsible,
stable financial profile
That is why a name does not necessarily become a potential client. However, by applying the
qualification process which will be taught to you, he could become one. But before giving him
too much time and energy, it is essential to have a precise definition from the start.
WHY PROSPECT?
It’s your survival! You need a constant stream of potential clients that is why you must prospect.
Your success, as an agent, depends on your success in prospecting.
If you constantly maintain a great number of potential clients, you will ensure yourself an
appreciable and regular income. Your income for the next month and year will depend on the
number of potential clients that you find today and in the years to come.
WHEN TO PROSPECT?
Prospecting must be done everyday. Just imagine that you withdraw money frequently from
your bank account without ever making deposits... you will discover soon enough the meaning of
the phrase “insufficient funds”. When you compare prospecting to deposits and applications to
withdrawals, it is easy to understand the failure of the bad prospector whose career comes to an
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end due to an insufficient number of potential clients. The number of your potential clients must
be twenty times higher than the number of your applications.
In order to be successful in prospecting, it must be organized in a methodical manner.
Prospecting is no longer a problem when it becomes a habit.
There are three essential elements in organizing your prospecting:
1.
The application and mastery of one or many prospecting methods everyday.
2.
Knowing your potential clients’ characteristics before the approach.
3.
The organization and daily update of “Interface”.
HOW TO PROSPECT?
There are many methods of prospecting. During your pre-contract period, you will have used
some of them without your knowing them. It is your personal observations, which made for the
completion of your Project 100. You used another method to get recommended names in the
course of your market analysis. It is even possible that you used suspect canvassing if your
market analysis came from people you didn't know. Without knowing it, you have also begun to
select your potential clients by writing, beside their name, additional information. It is usually
easier to select your potential clients by way of using the recommended names method (Endless
chain). There are no good or bad prospecting methods; all are valid if they are applied regularly
with efficiency. We will study them more closely throughout this module.
YOUR ATTITUDE TOWARDS PROSPECTING
You are now convinced that prospecting is necessary. Don’t forget that prospecting is a matter of
habit and attitude.
The habit
As you have already seen in other fields, a habit is acquired through practice. Thus, by practising
prospecting methods and arguments daily, they will be rapidly mastered and will become
automatic.
The attitude
As for the attitude, it mostly refers to a state of mind. It is better to look at prospecting with a
positive state of mind and to make it a continuous and systematic activity.
An agent who develops the habit of prospecting regularly and who keeps a positive attitude
regarding this activity can only succeed in his career.
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QUALIFICATION CRITERIA FOR A POTENTIAL CLIENT
The Webster’s and Robert & Collins dictionaries define a potential client as being a potential
client of a company. A qualified potential client is a person who represents a high selling
probability. You must focus your time and energy on him. Here are the minimum qualification
criteria.
A qualified potential client must:
 be mature,
 be responsible,
 have a sound financial profile.
What is meant by:
Mature:
A person who demonstrates soundness in his judgements and
behaviour; on whom one can rely.
Responsible:
A person who has the capacity to meet his commitments and
obligations towards himself, his family and others.
Stable financial
profil :
A person who already has financial assets
(house, investments, savings, etc.), or is in the process of acquiring
some (young professional or person beginning in the job market).
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THE GATHERING OF NAMES
There is a very simple technique to follow when it comes time to note the name of persons that a
reference source gives you. In fact, you just have to use a letter-sized notepad, draw a horizontal
and vertical line in the centre of the page, so that you can write the name of 4 potential clients on
each page.
Name_______
Name_______
Name_______
Name_______
In that way, you can have enough space to note the information you will need for each name in
order to contact those people later.
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Generally, that information is:
Name and first name
Address
Telephone number
Social status
Spouse
Children
Dependents
Employer
Occupation
Favourite hobbies
Don’t forget to identify the name of the person who gives you these references. This could be
useful when you contact them.
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The “A.W.W.” technique
When the time for prospecting comes, it is important to be mentally ready to face the hesitations
of the client or the reference source.
You have to use effective language, ask questions, which will bring the client to collaborate with
you. That kind of question calls for the positive alternative technique which incites the client to
make a choice rather than decline to answer: “I don’t know anybody“ That’s where the “A.W.W.”
(Among, Who, Who else) technique comes to your help.
At first, you have to identify categories of people that the person is likely to know or socialize
with (Among) your:
Parents
Friends
Acquaintances
Co-workers
Teamworkers
Partners
Subsequently, you have to use these categories of people, trying to identify situations they might
be experiencing now or in the near future. Situations such as (who):
Marriage/Union
Birth
New job
Moving
Adoption
Promotion
Opening of one’s business
Buying of a house
Lastly, see to it that you identify one or more people who are in the same situation as the
potential client who has just been referred to you (Who else?).
Now, here is how to link those two elements to be successful in prospecting.
“M…I would like to ask you a question. Among your friends, who
has become a new parent recently? Who else?
Among your friends, who has just gotten a new job? Who else?”
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The same is true for each of the other situations (marriage, moving, etc.). It is very important that
you use “Among, Who and Who else” as the case arises.
For example, if you develop this technique with one of your clients by using only 3 categories of
people (parents, friends, co-workers) and 4 situations (marriage, birth, new job, buying of a
house), this will give you 12 opportunities to obtain at least 1 to 3 qualified names from him.
That is why you must avoid prospecting by asking closed questions such as:
“Do you know somebody...?”
“Would you give me the name of one of your friends...?”
As you most certainly noticed, with respect to those two examples questions, the client could
answer negatively, even before you have finished your sentence.
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PROSPECTING SOURCES
After having drawn up the profile of the average potential client, let’s look at some of the best
sources to find them.
Upon analyzing the commissions of experienced intermediaries for the 1st year of a complete
work year, statistics show that the source of their new clients is mainly found in:
1.
Prospecting interview
2.
What do you think?
3.
Existing clientele
4.
Parents, friends, acquaintances, etc.
5.
Government plans
6.
The Endless Chain (referrals)
7.
Personal observations
8.
IARD
9.
Direct solicitation
10.
Approach by way of the will
11.
Mandate in case of incapacity
12.
Market Analysis
13.
RRSP
14.
Home Protection Plan
15.
Peek-a-boo Program and Kiddy Plan
16.
Accifamily
17.
Exchange of service
18.
Influence centres
Let’s look more closely now at each of these methods.
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1-
Prospecting interview
Also called “3rd person approach”, this source is very useful to find quality potential clients
among people from “PROJECT 100” that you completed upon your hiring, without necessarily
"burning" them as future clients. The first goal of a prospecting interview is to obtain qualified
recommended names.
Contact these people emphasising that you want to meet them to get their opinion on the way
you work (Pause). If they seem to be reluctant or ask you if you want to sell them something, ask
them if they are buyers at the moment. In the affirmative (rare), just set an appointment. In the
negative (usually), insist on the fact that you only want their opinion and that you will not try to
sell them anything!
With the potential client, do a Time Out presentation by explaining in detail each of its parts.
Don’t hesitate to put the emphasis on the usefulness of each document: the success of this
presentation depends on it.
However, it happens sometimes that the person is interested in analyzing his own needs. If such
is the case, you have a choice: set an appointment later, or you will not be true to your word if
you do it on the spot. On the other hand, if you don’t have other appointments scheduled, you
could make an analysis of his needs with his consent.
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2-
What do you think?
This prospecting tool allows the eventual client to understand what financial independence is all
about, while helping him/her to see clearly in their personal situation and adopt a point of view.
This meeting lasts approximately 30 minutes, preferably takes place during the day, is not aimed
at making a sale and should be held at a “neutral” location. (ex. A coffee shop, at your office or
the client’s workplace if possible.)
Use this prospecting tool when you want to qualify a prospect or wish to assess a situation with
clients or prospects who are not disposed to let you make a genuine sales presentation.
In the case where everyone necessary to make a decision cannot be present, you can have the
questionnaire completed by only one person. (When one of the participants necessary in the
decision-making process feels that it would be everyone’s advantage to allow you to make a fullfledged sales presentation, this person is usually able to convince the remainder of the group.)
When you provide information on services to someone who could become a centre of influence
or a key contact later on, have them complete the questionnaire in order to show them how they
could be useful to others.
When facing “a cold door”, you can use the questionnaire to learn the prospect’s opinion and
explain how, with the use of this document, you can assist them in achieving their financial
objectives.
During information sessions, the questionnaire can be used to generate interest among
participants.
You can mail the questionnaire to prospects in order to establish an initial contact. (However, in
doing this you’re also losing the chance to schedule an appointment as soon as the prospect has
finished completing the form.)
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3-
Existing clients
This prospecting source consists in identifying the persons insured in your service unit and to
offer them the services they are entitled to. Do not hesitate to get in touch with the owners of
those policies, for even if they do not immediately purchase insurance from you, they can
recommend other people interested in meeting you. By giving them continuous service, you will
have the opportunity to check their financial security program and you will get contracts in the
future.
The selection of those insured will be eased by the information already in the agency files. Your
approach will come naturally, since there is trust both in the life insurance and in the company,
having already purchased a policy from your company.
In order to have a successful service offer interview, make sure you know the types and the
amounts of insurance held by the insured person. If you do not understand details of the types of
insurance, do not hesitate to ask your director for explanations.
It has been proven that a person purchases life insurance an average of 7 times or a related
product when the following events occur: first job, marriage, birth, buying a house, for himself,
his spouse or his children. That person purchases life insurance, insurance in case of disability,
automobile insurance, a miscellaneous risk insurance, a retirement savings plan, or else makes an
investment. If he is in business: life insurance on associates, key persons, a group insurance, etc.
You see the importance of giving good service to the existing clients by reviewing their
insurance portfolio with them. Don’t forget, one service often leads to another.
To update the client’s file, use the Time Out “File Update” (F13-248A).
For more information, see the Interface teaching guide, section “Customer service”.
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4-
Parents, friends, acquaintances
Names make up the raw material from which you will be able to make profitable lists of
potential clients. It is possible for you to gather thousands of names from phonebooks,
association directories, electoral lists, etc. But why begin with these impersonal lists when you
could find hundreds of names among your potential clients: people you already know.
Perhaps are you thinking: “I do not want to approach my friends and look like I want to impose
something on them. I do not want to owe a favour to anybody”
It is a good thing to remind oneself that friendship is reciprocal, that the business world is based
on this reciprocity. Let’s suppose that a toothache forces you to see a dentist. Your town has
three dentists of equal competence and one of them is your friend. Will you deliberately avoid
going to see him, on the pretence that he is a friend? Of course not. Likewise, you must not
hesitate to approach your friends and acquaintances to talk to them about the services which you
are able to offer.
Whether they act out of necessity or the need for additional insurance, people buy, preferably
from persons who have been recommended to them. It is logical that you should want to put
these friends and acquaintances at the top of your list of possible potential clients. You can
approach them easily; they will listen to you attentively because they know who you are.
Today, you might hesitate to go see a friend to talk about life insurance, out of fear of “taking
advantage of his friendship”. But, what would you feel if this friend should suddenly die
tomorrow, without having had the chance of meeting you? What would you think upon learning
from his spouse that his insurance was insufficient?
Read the following story; this will certainly give you food for thought.
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What kind of a friend are you?
Jacques and Paul got to know each other during their
college years; they were good friends. Upon graduation, they
married two young girls from their hometown who were also
good friends.
Jacques continues his studies until he gets a master’s
degree and becomes a teacher in a college. Paul takes on a
career in life insurance. Despite a distance of 250 kilometres
separating the couples, their friendship lasts and they see each
other frequently. Some years later, Jacques buys from Paul a
$50,000 insurance policy. Paul decides, however, not to “profit”
from their friendship to draw Jacques’ attention to his family
responsibilities. He knows that a college teacher’s salary is not
very high and he does not want “to squeeze more money out
of him”.
One day, Paul gets a phone call from Jacques who is
hospitalized. With a faint voice, he asks Paul to come see him
immediately.
When Paul arrives at the hospital, he learns that his
friend has only 6 months to live. Jacques reminds Paul that he
has always been his life insurance advisor.
“...that’s why I never listened to other insurance agents.
Now, I will leave Madeleine and the two children. The only
thing they are left with is the insurance you sold me, that is to
say less than half a year’s salary. What kind of a friend are you
for me to leave my family in this situation?”
What kind of a friend are you ... for your friends?
The approach for this prospective source will be seen in the “Approach” module.
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5-
Government Plans
Note that in most government plans, you must have contributed to a minimum of years to benefit
of these prestations.
You could receive prestations in case of death, disability or retirement.
This prospecting method has proven to be the most effective of all when trying to establish
contact with complete strangers.
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6-
The Endless chain (referrals)
The Endless chain source is the most advantageous and professional of all sources, with it you
select potential clients and eventually develop Influence centres.
To use this source efficiently, you must deserve it, by giving good service, by working in a
conscientious manner, by being honest and professional.
The main reasons why your clients will recommend your services are the following:
To help their friends, their parents, their acquaintances;
To show you how much they appreciate the services you gave them;
Because they trust you and they like the way you work;
Because they want to ensure your future services;
By friendship for the people they recommend and perhaps also out of friendship for you.
The reasons why you want recommended names are the following:
Because you feel more at ease with a person you meet through a parent or a friend than
with a stranger;
Being more at ease, the potential client will put more trust in you, and you will do better
business;
To reap free advertising by word of mouth;
To eliminate the pressure between you and the potential client, since having a common
acquaintance eases the atmosphere;
Because you need potential clients every day;
To ease the selection of your potential clients;
Because you like to help;
To reach the greatest possible number of potential clients in less time.
The recommended potential client will be more open, more friendly, more welcoming and will
put more trust in you because the person who recommended him trusts him. The persons who are
the more likely to give you names of potential clients are the policyholders who bought
insurance from you. But you can ask every person you meet for them, during a visit, an interview
and, above all, when delivering a contract.
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Here are the results you will get from the Endless chain beginning with John Client. You will
obtain the names of potential clients to whom you will offer your services. They, in their turn,
will give you other names of potential clients and so on.
Dennis
Frank
Erik
Jack
John
Helen
Carol
Guy
Mary
* The Endless chain technique will be seen in greater detail in the “Delivery” module.
In the 1998 LIMRA study “Opportunity to buy”, from the 28% of people who had or had not
met an agent, 12% recommended a parent or a friend and 16% would have done so if they had
been asked to.
People are more inclined to recommend names than one would imagine, especially if the agent
had the opportunity to establish a good climate of confidence during the interview. The agents
who establish a help relation will have an even better chance to secure references.
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7-
Personal observations
Everyday, you rub shoulders with people who might buy life insurance. Personal observation is
simply to get into the habit of seeing, listening and asking, focused on a single goal: the search
for potential clients. Many agents use this prospecting method without effort.
Personal observation can be done anytime, any day of the week; there is no specific time to do it.
Potential clients are everywhere. Be alert and have your prospecting cards (F15-152A) handy.
How many people can you meet in a day? How many businesses do you visit? How many times
did you go by a particular gas station, super market, store in your neighbourhood, without even
noticing? Why not stop by? People who work in your building, your suppliers, did you approach
them?
Newspapers are also a good source of potential clients. Read the articles concerning promotions
and new businesses. Turn the page, to the births, the marriages. Why not send them a note of
congratulations? (F82-18A). Take advantage of the chance to express your wish of meeting with
them in the near future.
Newspaper sources
Career changes
Charity benefactors
Company administrators
Company directorship changes
Construction permits
Engagements
Entrepreneurs
Graduations
Incorporation notices
Marriages
New companies, sales of
companies, reorganizations
Political nominations
Professionals (lawyers, architects,
doctors, etc.)
Promotions
Real estate transfers
Relatives listed in death notices
Social columns
Etc.
Potential clients are everywhere, be opportunistic!
In social meeting, did you notice that as soon as you mention your profession, people would talk
to you about insurance, even if the circumstances were not the best (a birthday, in a restaurant, at
the store, in a meeting, etc.)? Do not give them advice right away. Tell them you would rather
discuss it at a more appropriate time and schedule an interview. Your chances are higher of
selling insurance during an interview than during an evening with friends.
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8-
General Insurance
In most regions that are served by an Industrial Alliance agency, a general insurance quote is
offered free of charge to anyone who requests it either directly or through a referral made by
another agent.
Offer this service following a life insurance sale, meeting, service call or simply when
scheduling an appointment. However, it’s preferable to check with your agency first to make
sure that this service is available in your region.
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9-
Direct solicitation
With this prospecting source, you will get in touch with people who do not know you, on whom
you have no information and who have not been recommended. With the help of your "Market
Analysis", you will find this source useful for the following reasons:
To fill in a slack period between interviews.
Knock on the next door or stop in businesses which are along your route. If you don’t
have enough potential clients or sales interviews, go “shopping” to make contacts and
visit office buildings.
To improve your approach and your proposal.
A direct contact is more realistic than role playing.
To develop your social skills and feel more at ease with strangers.
This method allows you to meet more people in less time than with the other
methods.
To work with another agent.
Joint work motivates and instructs thanks to the observations and demonstrations
exchanged between two agents taking turns.
To increase the receptiveness of the potential client.
Indeed, it is more difficult to say no in person than on the telephone; a personal
contact makes the approach warmer.
According to a LIMRA survey made in 1998, among 69% people contacted directly, only 22%
agreed to an interview and 13% bought life insurance.
Direct solicitation can prove to be less efficient than the endless chain or the centre of influence,
but it also helps you build up a clientele. It is a method that even the experienced agent uses
when he needs to meet new challenges.
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10-
Approach by way of the will
A person who dies without leaving a will in due form leaves his next of kin open to a variety of
serious and unpleasant difficulties. However, very few people are aware of this. For this reason,
“the will is the way” to an interview with a potential client who does not have a will, or who has
not had it revised for several years.
As you would do for the mandate in case of incapacity, prepare a list of people you know and
whom you can contact later about their wills. Do not forget to add your own name to this list,
and for the same reasons.
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11-
Mandate in case of incapacity
The mandate in case of incapacity is still little known by the general public. Just as a will is
necessary in case of death, the mandate becomes essential in case of incapacity, because it
ensures the administration of our belongings, as we would wish it, even though we can no longer
do it ourselves.
By reading up on the mandate in case of incapacity, you will discover the key elements, which
will later serve you to interest your clients and then convince them to fill out theirs.
Prepare a list of people you know and who you will be able to contact later to approach them
through the mandate in case of incapacity. Do not forget to include your name in this list.
Otherwise, how can you convince others of the validity of having a mandate if you don’t have
one yourself?
During a sales interview, the agent has to obtain personal information, establish goals and plans,
analyse needs, etc. It is essential to do the work in a professional manner if you want to convince
potential clients to do business with you and to be able to serve them as professionally as
possible. During this interview, among other subjects, the importance of making a will and
drawing up a mandate in case of incapacity will be discussed, these are things for which few
people have taken the time and trouble.
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Market analysis
The market analysis can be done directly in the home of the potential client. You can also call
him to set up an interview with the same objective.
The object of the analysis is to have the person discover that he could surely benefit from another
meeting with you to carry out a more complete analysis of his situation. By acting in such a
manner, you avoid being accused of obtaining a sales meeting under pretext.
Also, you will conform with laws and regulations of the Autorité. (For more details, see
Module 10 – Compliance)
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Registered Retirement Savings Plan (RRSP)
RRSPs are not sold only in January and February but throughout the year.
A large number of potential clients don’t know how RRSPs work. Many people believe that they
will pay large amounts of taxes when they cash them in. It’s therefore your responsibility as an
agent to meet with them and explain how these products really work!
Few people are aware that they can employ their unused RRSP contributions to buy their first
home. Even fewer people know about spousal RRSPs, which allow couples to decrease their
individual retirement income.
Since RRSPs are a tax shelter, they allow clients to watch their capital grow while remaining
sheltered from taxes. RRSPs are registered with tax authorities and therefore receive special
treatment both at the time of deposit and when they are withdrawn.
Don’t hesitate to contact your parents, friends, acquaintances and even people you don’t know in
order to provide them with information on RRSPs and win them over as new clients.
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14-
The Home Protection Plan
One of our most competitive products is undoubtedly the Home Protection Plan. It’s a very
popular prospecting tool that is effectively used by agents to literally wipe out the competition.
If your clients do not have disability insurance through their financial institution, you should:
Inform them about this type of protection. They probably don’t fully understand the
financial consequences of a disability. You are in an ideal position to explain the
importance of this type of protection.
Advise them that the chances of becoming disabled before fully reimbursing their
mortgage loan are 2½ times higher than the chances of dying during this same period.
Advise them that disability insurance is not offered by all financial institutions. This
gives you an advantage over other institutions.
The interest rate protection option is another powerful sales tool that’s available to you. Use it!
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The Peek-a-boo Program
The Peek-a-boo program is a free offer of accident insurance for new-born babies. The program
is given out in two ways: directly in many hospitals, in CLSCs and in centres giving prenatal
classes by way of inserts and by agents where they choose.
The direct method involves charges for the agents. He has to pay $5.00 to get the postal codesbased references given to his agency. The agent who chooses to distribute his Peek-a-boo leaflets
has the advantage of developing his own market, such as dentist offices, drugstores, private
medical clinics.
The best moment to buy life insurance is at a child’s birth. The Peek-a-boo program has been
implemented to give the agent an opportunity to seize this chance. The delivery of a free accident
insurance policy with a practical night light gives him the opportunity to offer his services, such
as to proceed to do a needs analysis with the Time Out.
In order to get information, offer the client to fill in the application form with the client. A policy
renewal lets you get in touch with your clients and to offer them the other services available.
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16-
Accifamily
With accident insurance clients, you can build up a client base to whom other life insurance
products can be offered.
The natural market for accident insurance is the school system. However, other clients may
benefit from accident insurance:
Bowling leagues
Snowmobile clubs
Sports clubs and centres
Squash clubs
Ski resorts
Softball leagues
Summer camps
Tennis clubs
Accident insurance can be offered on an individual basis to children who follow courses or
watch activities and, on a collective basis, to take advantage of attractive rates and to be a
member of the club.
Accifamily is offered on an individual basis and it is easy to become a member. You are given a
service unit, which gives you a good reason to get to know your clients. This product is easy to
explain and does not require a big investment.
Accigroup and Accigroup Plus are offered on a collective basis. In general, it is easy to renew
the group insurance. Do you know a person responsible for an association, a day-care worker, or
a member of a club? You can offer them an accident insurance policy at an attractive rate.
To know more about accident insurance, please see the Marketing Guide (F13-220A).
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17-
Exchange of services
With this prospecting source you can develop a network of resource persons such as lawyers,
attorneys, accountants, tax experts, etc.
It’s a win-win method! Indeed, if you develop an agreement of services exchanged with a
lawyer, he will refer his clients for life insurance (mortgage, etc.) or for a needs analysis of needs
(Time Out). Among the potential clients you meet, you will find that some of them will need
specialized services. You could then recommend an interview.
How to contact those professionals?
Since you are beginning your own career, it might be interesting to develop an
exchange of services with a professional who, just like you, is beginning in his own
field, but it is not a steadfast rule.
You could invite him for lunch in a restaurant. During the meal, describe to him the
main lines of your work when meeting a potential client; keep a complete Time Out.
Then, ask for an interview in his office, to see how he works.
Tell him that you are meeting people, on a regular basis, who would need his services
and that you are presently looking for a person working in his field.
Be very explicit about the exchange of services idea, meaning that you are willing to
refer your clients to him and that you expect him to do the same with his clients, those
who would need “YOUR” services.
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18-
Influence centres
A person with whom you have friendly relations, who WANTS and CAN recommend people
likely to became good potential clients. For example:
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Lawyer
Attorney
Salesman
Jeweller
Nurse
Accountant
Hospital director
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Bank manager
Personnel manager
Club secretary
Furniture salesman
Real estate agent
etc.
You will thus ensure their help, not necessarily to sell them life insurance but also to meet,
through them, their friends and acquaintances. Have you ever thought about how much influence
a person has? Some qualifications are essential:
The person knows you well, appreciates and trusts you;
He understands human relationship problems and sincerely wants to help;
He appreciates life insurance services and those of the agent;
He is easy to approach.
If the person you have in mind fits this profile, you could obtain his collaboration by following
certain rules:
Continue to keep up friendly relations. If you believe that a lunch or a short visit could
further this friendship, then do it;
Keep him informed about the services offered by your agency, the Company, and even
your own business;
Get his permission to use his name and don’t go further without his consent;
Do not divulge confidential information (Bill 68).
Help stimulate his imagination with human interest stories;
Direct his thoughts and having him give you names only. Qualify them immediately;
Keep him informed of the steps you take and the results obtained when you have met a
potential client that he has referred.
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DEFERRED PROSPECTING
What is “deferred prospecting”?
Deferred prospecting is a prospecting method practised by agents who want and desire a career
and wish to set up sales for future years.
When you sell insurance to a client who has children below 18, write down their names, birth
dates, address and telephone number. Back at your office, enter those informations with the ones
you already have (birthdays) or enter the data in your computer.
By regularly contacting the parents (twice a year), it will be easy for you to meet their children at
the appropriate time. You will then have first class potential clients, who will be very receptive
to your offers of service and well disposed to refer you to their friends or acquaintances.
To sum up
While applying the “AWW” formula with each source, here is a way of combining the
prospecting methods so they are fun and profitable.
Count on the co-operation of people around you during your prospecting interviews;
Increase your number of potential clients by using direct solicitation, What do you
think?, REER;
Offer your services to your relatives, friends, acquaintances; they will surely
recommend potential clients;
Note recommended names (Endless chain) at each delivery;
Be attentive, opportunistic, creative and think in terms of prospecting; personal
observation will bring you many sales;
Make sure you keep your clients by giving them good service. A regular review of their
insurance portfolio will ensure more purchases;
Take note of pregnant women and draw up a list of places you want to visit to offer the
Peek-a-boo program;
Give complete service by proposing the Accifamily insurance and transform your
interviews into prospecting or analysis interviews.
Draw up a list of professionals with whom you would like to exchange services;
Develop and nurture influence centres;
Whatever the method you like best, you must always adapt it to your personality in order to feel
sincere with what you say. People can feel the honesty and sincerity of an intermediary and the
well-informed consumer will only trust the sincere and honest “salesman”.
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The fastest way to adapt a method to one’s own personality is to memorize the structured
conversations and to practice them as often as you can. Psychologists say that an action repeated
each day, during 21 days, becomes a habit. So choose your actions so that they become good
habits and turn your career into success.
According to three of the sources previously described, here are the number of interviews and
sales you obtain for each 100 contacts.
Sales per 100 contacts for three sources
100
90
80
70
60
50
40
30
20
10
0
Endless chain
Clients
Cold calls
Contacts
100
100
100
Interviews
58
50
22
Sales
20
13,5
2,5
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CAUTION!
BEWARE OF “DEADWOOD”
If, in the course of an approach or an interview, you learn that a person, who seemed a good
potential client does not have one or more of the basic qualifications any more, automatically
destroy his potential client card. Also, a potential client may have these qualifications, but finds
all sorts of excuses to postpone or to systematically refuse the appointment; you can keep his
name and others of the same type in your computer database and contact them occasionally.
A running study estimates that:
More than 85% of all sales are done during a first or second interview;
Nearly 10% of all sales are done during a third interview;
Only 5% of all sales are concluded after the third interview.
If 95% of all sales are concluded during the first, second or third interview, is it not wise to
eliminate the potential clients who have not purchased after the third interview? If you keep
these names in your potential client database, you will have a false sense of security when you
check your number of potential clients; you will also waste time following this “deadwood” and
finally, you will come to doubt your prospecting ability. Destroy them and replace them with
new potential clients!
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PROSPECTING
QUESTIONNAIRE
Do not write your answers on the questionnaire.
1.
Why is it important to prospect?
2.
What are the essential elements to organize prospecting?
3.
How is prospecting done?
4.
What is the attitude of an agent regarding prospecting?
5.
Name the qualification criteria of a potential client.
6.
What is the necessary basic information to have on a potential client?
7.
Draw up a list of prospecting sources.
8.
What is personal observation?
9.
What is the main reason to prospect by direct solicitation?
10.
Why can serving existing clients help in prospecting?
11.
Define a good influence centre.
12.
What prospecting source gives the most recommended names, give a brief description.
13.
What are the advantages of using an exchange of services?
14.
How can “Project 100” be put to profitable use in prospecting?
15.
Describe the “AWW” technique.
16.
Why should you take down information when performing deferred prospecting and how
should you go about it?
17.
On average, how many times does a person purchase insurance?
18.
In what circumstances should you use the “What do you think” questionnaire?
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PROSPECTING
PRACTICAL EXERCISES
Do not write your answers on the questionnaire.
1.
Draw up a list of potential clients in Interface
2.
Do prospecting interviews (Project 100) – Role playing.
3.
Calculate your statistics:
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Number of telephone calls;
Number of contacts made;
Number of interviews obtained;
Number of sales;
Number of references obtained.
Click here to return to index.
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